First housing sector growth since 2007, says new report

New housing consents are leading an upward surge in the residential housing sector, which recorded its first growth since June 2007, says a leading industry analyst and economic forecaster.

BIS Shrapnel's Building and Construction in New Zealand 2009/10 - 2015 report indicated a 27 per cent increase in detached housing consents in the December quarter of last year.

Despite continued fluctuation in apartment building consents, BIS Shrapnel expects the rebound to continue over the coming years, driven by a shortfall in the supply to new houses versus the demand.

Adeline Wong, senior project manager for BIS Shrapnel, said consumer confidence was expected to pick up as economic growth strengthened.

"Despite forecast increases in mortgage rates over the next two to three years, although the official cash rate is forecast to remain well below its peak in 2007 and 2008, we expect home buyers' confidence to be boosted by wages and employment growth," she said.

To read the full NZ Herald article, click here

Posted: 9 Feb 2010

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